Indonesia’s pharma market to reach US$10.3 b by 2030

The ML3 status for BPOM is seen to accelerate market growth and exports.

Indonesia’s pharmaceutical market is projected to reach US$10.3b (IDR225t) by 2030, with a compound annual growth rate of 7.1%, after the Food and Drug Monitoring Agency (BPOM) secured Maturity Level 3 (ML3) from the World Health Organization (WHO) in December 2025.

The ML3 status expedites product approvals, enhances quality assurance, and attracts international partnerships and investment, according to a BMI report.

Exports in the sector are also expected to grow from US$746m (IDR12.3t) in 2025 to US$946m (IDR17.8t) by 2030.

A BMI report noted that low per capita pharmaceutical spending, infrastructure limitations, and intellectual property (IP) protections remain challenges that may limit the full impact of regulatory improvements, despite stronger oversight and faster product approvals.

The 2025 Pharmaceutical Research and Manufacturers of America (PhRMA) annual report placed Indonesia on the Priority Watch List, continuing its appearance in previous years’ reports.

The PhRMA report highlighted ongoing concerns over market access barriers, including discriminatory IP rules, forced localisation requirements, and restrictive patent criteria, which could constrain Indonesia’s attractiveness to foreign investors despite regulatory progress.

1 US$ = 16,500 IDR